Market opportunity and trends

This profile envisages the establishment of a farm for the rearing of poultry with raising capacity of 200,000 heads of poultry per annum. Poultry meat and eggs have become the most important sources of protein in the human diet by using it directly or after passing through food processing industries.

The present unsatisfied demand for poultry meat and eggs in Addis Ababa is estimated at 7,750 tones and 5,410 tons respectively. The demand is expected to reach at 7,845 tones and 11,238 tones for eggs and poultry meat respectively by the year 2020.

The poultry farm has a backward linkage effect on animal feed processing industries and a forward linkage effect on food processing industries. There is also a substantial export potential.

The major consumers of the product of the envisaged plant will be hotels, restaurants, supermarkets, various institutions with food catering services, and households.

Market study

Past Supply and Current Demand
Poultry products such as egg and poultry meat are the central diets of Ethiopian’s. “Doro Wet” which is prepared from poultry meat and eggs is one of the favorite dishes of the local population which is prepared especially during religious festivals and holidays, virtually in every household in the country. Moreover, eggs as they are easy to prepare and digest, have good test and nutrient are becoming the favored breakfast items in urban areas like Addis Ababa. Accordingly, due to the traditional consumption habit and as the awareness of the population on the nutritional and other advantages of poultry products increases the market for the products is also expected to expand. The poultry population is insignificant as compared to the national poultry population, which is estimated at about 63 million.

Demand
With increasing income or purchasing power, people demand more diversified food products like poultry products. Therefore, the level of poultry products consumption has a strong association with the growth of income. Currently there is a higher demand for poultry products in the local and international market.

Pricing and Distribution
The envisaged farm, as a popular poultry farm in the market, has to penetrate the market and create awareness and product loyalty and have great market share at this time. Therefore, the objective of the pricing policy should be to gain a foot hold in the market, get a sizable market share and attempt to sustain a reasonable profitability, which at the initial stage, could only be achieved through charging of lower prices that could influence users of the product.
The product can be sold directly to the agricultural office of the SNNP regional state, different government agricultural offices which they also distribute for farmers and bulk consumers/buyers. For individual buyers existing outlets such as local and super markets are also customers for the products.